While it is true that mortgage lenders & creditors typically give people with a good a credit rating, less scrutiny to refinance their home or condo mortgage. However, there is hope though for refinancing a home loan even if you have less than perfect credit. We will discuss what a bad credit report means, and how to improve your credit score, and how that affects your mortgage refinancing chances.
Typically, mortgage lenders use FICO credit score when looking over a potential borrower’s credit report. In the refinance industry, the FICO credit score is the most widely used determining factor in credit worthiness for people desiring a mortgage or refinancing. A FICO score is all of your credit information, analyzed, and given a single score.
The 3 determining factors mortgage lenders use when giving you a credit score are.
Payment history – Paying off loans or credit card debt early is a bonus. Amounts of credit issued and used arealso factored in
Credit History Length – Basically, how long you have been making consistent credit payments. The longer the better. Also the type of credit issued.
New Credit – The number and amount if recently issued credit.
Improve your credit score by paying bills on time. Clear any old debts off your record, the sooner the better. Make sure the credit you do have stays under control, make payments early and more than the minimum.
Always get a credit report before doing any of this. Check my links for refinancing lenders quotes mortgage calculators and free credit reports.
-M Petrone
http://www.RefinancingCondo.com
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Help answer the question about refinancing mortgage
Question about refinancing a mortgage and the tax implications?My future son-in-law is trying to refinance his home mortgage. The man handling the refinance suggested that he might get a lower interest rate if he included my daughter's income and assets. They are unmarried, living together in Minnesota and expecting their first child in December. There are two parts to this question: Part One – Is this true about the possible lower interest rate and a good idea? and Part Two – Would they have to file taxes together from that point on? I would appreciate any advice and comments.
well i really can't awswer this question but i think real estste financling is something really hard
Yes!! My husband and I are 3 years out of our bankruptcy and where we do get some credit the APR on all of them are around 16%-18% which is a lot of extra money that we are paying now because of what we did then. If I knew then what I know now I would of never filled. We even got questioned when we wanted to rent a new apt and they pulled a credit report. We have to explain why we filled every time we want to apply for anything. It is really hard now and quite embarrassing. Now i cannot tell you how things would of went had we not filled but at the time it was a "quick fix" and it did work. We got rid of all of our debt. I still would never do it again or recommend it to anyone. Only you know your situation and I would advise talking to a lawyer before you file. Just to know your options. I would maybe even look into a financial advisor to maybe find out some other options on how to get your debt paid off. Good luck it is a tough decision.
Amen!
The other thing I've seen lately are "investors" who offer to purchase your home, steal most if not all your equity, and rent the home back to the original owner with the idea that the home can be purchased back after one year. Often times the rent is more than the original mortgage payment. And there is no guarantee that you will qualify for a new mortgage later.
Please heed loancareer's advice and work with your existing lender.
That is Great advice! He is right on the money! I wish I could click that you are a "best answer". People, do not be afraid of contacting your lender. They WILL work with you.